Cecilia Malmstrom is photographed during a press conference to launch the first Anti-Corruption Report, at the EU Commission headquarters, in Brussels, Belgium, on Feb. 3, 2014. / Julien Warnand, epa

by Louise Osborne, Special for USA TODAY

by Louise Osborne, Special for USA TODAY

BERLIN â?? The German government is planning to force politicians to wait a year before moving a new related job in the private sector following a European Union corruption report that says corruption on the continent is "breathtaking."

"In the last few months, the discussion over reforms in the EU has been very one-sided, focusing on the countries hit by the financial crisis," said Edda Mueller, leader of anti-corruption watchdog, Berlin-based Transparency International.

"With that, it is frequently overlooked that reforms are due in the other countries as well. In the current leadership role Germany has taken on during the crisis, it should also take the lead in the battle for integrity."

Germany was singled out in the EU's first Anti-Corruption report for its "revolving door" from government work to corporate jobs. The EU report blasted countries for behavior it said cost the European economy around $162 billion per year.

"The extent of the problem in Europe is breathtaking," stated EU Home Affairs Commissioner Cecilia Malmstoem, who presented the report. "The political commitment to really root out corruption seems to be missing."

Its release also comes as Germany's government attempts to deal with an uproar over the nomination of German Chancellor Angela Merkel's former chief of staff Ronald Pofalla to the board of directors of state-owned rail operator Deutsche Bahn.

Critics say Pofalla's new position as a chief lobbyist for the company would be a conflict of interest, considering his close relationship with the government.

Now the German coalition is discussing legislation to introduce a year's "cooling off" period to prevent politicians from moving directly into an economic position.

The EU agreed saying in its report that Germany needed to create a policy when dealing with such cases of officials leaving public office to work for companies they may have recently helped. The document also called on Germany to introduce stricter penalties for corruption of elected politicians.

Meanwhile, the report, which was the first published by the EU to detail people's perceptions of corruption in the union, also said that 76% of Europeans think corruption is widespread, with another 56% saying they thought the level of corruption in their country had increased over the past three years.

"I think the perception is almost as important as the reality of how much corruption there is because if people feel that the national or EU institution is corrupt, it clearly is an indication of a lack of confidence, a lack of trust and a lack of respect for those governing institutions," said Ben Tonra, a professor of European foreign, security and defence policy at University College Dublin.

"In the current context of economic austerity and collapse it can be very serious in terms of a disconnect between populations and government."

Despite the issues detailed by the report, Germany was highlighted as among the best of the 28 member states for fighting corruption, while it was seen as more of a challenge in other countries such as Bulgaria and Romania, the newest members of the EU.

The EU said that in Bulgaria, "corruption remains widespread" and called for the country to "shield anti-corruption institutions from political influence" also suggesting that "a code of ethics is adopted for members of the National Assembly" and that "dissuasive sanctions for corruption in public procurement are enforced at a national and local level."

Meanwhile, in Romania, the EU said both petty and political corruption remained a "significant problem".

The past two years have seen hundreds of thousands of people taking to the streets in countries including Bulgaria, Romania and the Czech Republic to protest against corruption within their governments. The issue has also brought down governments including last year in Slovenia.

"Corruption undermines citizens' confidence in democratic institutions and the rule of law, it hurts the European economy and deprives states from much-needed tax revenue," said Cecilia Malmstrom, EU commissioner for home affairs. "Member states have done a lot in recent years to fight corruption but the report shows that it is far from enough."

Still, while Tonra said the report was unlikely to push government to immediately make changes, he said it was a good starting point to get nations discussing corruption and possible ways to move forward on solutions.

"It starts national conversations and if the EU continues with thisâ?¦and we see countries going up and down league tables of corruption, it will feed into this discussion of where we are in the corruption stakes and why we haven't we made any improvements on last year," he said. "All of that then contributes to a degree of pressure on governments to respond."